Illustrative image (Source: VNA)Hanoi (VNA) – Aneconomy with relatively high growth, the high proportion of foreign directinvestment (FDI) capital and remittances spurred growth for the Vietnamese realestate sector in 2016 and the trend is expected to continue in 2017.
At a press conference on thereal estate market held by the CBRE in Hanoi on January 10, the Americanreal estate firm said the proportion of the FDI capital flowing into the realestate market in 2016 was the second highest among economic sectors.
According to CBRE Vietnam General DirectorMarc Townsend, despite a lack of breakthroughs, resources for the real estatesector remain strong and will prop up the market in 2017.
The HCM City Real Estate Association sharedthe viewpoint with CBRE, saying that FDI capital and remittances will continuesupporting the market.
According to Nguyen Hoai An, Director ofresearch, consultation and appraisal and asset management of CBRE, FDI capitalremained a key growth driver in 2016 and seven percent of FDI flowed into realestate, which was modest compared with the level of 25 percent during 2007-2009but was valuated as more sustainable.
On the development of the real estatemarket, Savills Vietnam cited the sector’s growth of four percent in 2016, thehighest level in the last five years.
The growth of the sector is manifested by morethan 3,100 newly-established enterprises and retail revenue of 117 billion USD,up 10 percent from the previous year.
An said the apartment supply in Hanoi fell10 percent but the number of successful transactions increased month by month.
In the city, a total of 21,188 apartments weresold in 2016.
According to Savills Vietnam, about 77projects with 55,000 apartments will join the market in 2017, mostly located indistricts of Hoang Mai, Thanh Xuan, Ha Dong and South Tu Liem.
Nguyen Tran Nam, Chairman of the VietnamReal Estate Association, said the demand for small-sized apartments and socialhousing is large, with concerted efforts from the government needed to developthese markets.-VNA
